Latest news with #investmentbanks
Yahoo
a day ago
- Business
- Yahoo
Where Will Chime Be in 3 Years?
Key Points Chime stock is trading around its closing price on its first day of trading, giving retail investors a chance to buy early. It's reporting strong growth in a niche financial services sector. Management sees a large opportunity to expand its platform and its audience. 10 stocks we like better than Chime Financial › Every investor would love the opportunity to get in early on initial public offerings (IPOs). The earlier you buy, the better the chance to gain, at least in theory. That's not what always happens, especially today, when IPOs are very public indeed and often come with a lot of hype. Part of the problem is that most of an IPO's shares go to institutional investors, especially the investment banks that underwrite the offering. Retail investors get a chance to buy only after the stock is already on the open market, and with the speed at which stocks trade in the markets in the digital age, prices can run up quickly, making it unaffordable for retail investors to have any real chance at a low price. The good news, for retail investors at least, is that this model lends itself to price drops. IPO stock Chime Financial (NASDAQ: CHYM) is a great example. The IPO market has been quiet lately, and Chime was one of few exciting stocks going public in recent months. It priced its IPO at $27 per share, and the stock opened on the stock market at $43. However, it ended the first day at $35, about where it stands today, a few weeks later. Is this an opportunity for retail investors? Let's see where Chime could be three years from now. Equal access in banking Chime is an all-digital bank targeting lower-income clients with financial products to make their lives easier. It grew out of a desire to fill a gap in the banking system, which it says isn't favorable to the two-thirds of Americans who are living paycheck to paycheck. Since this population isn't filling their bank accounts with lucrative deposits, the traditional banking system charges them fees in order to make a profit from them. With today's abundant technology, Chime's founders set out to create an agile and low-cost bank with a different money-making model that relies on interchange fees from credit card payments. Instead of investing in creating its own bank, it has partnerships with two banks that give the company a small cut for the deposits they get from it. Today, Chime offers a small but growing set of services, including savings accounts and credit cards, and it has 8.6 million customers. Of the 75% of transactions per customer in the first quarter, 70% were for nondiscretionary purchases, and 67% of account holders use Chime as their primary bank account. The target population is finding value with Chime. According to a 2024 internal company survey, more people making less than $100,000 annually switched to the company or opened with it for direct deposit more than any other bank, and 75% of Chime members say they will be members for life. They have 3.3 products on average, indicating that members are enjoying being in the ecosystem. Expanding access and its market Right now, management sees an $86 billion opportunity in serving the 196 million Americans who make less than $100,000 annually, of which it has a 3% share. However, it sees potential to expand its platform and its audience and envisions a market opportunity of $426 billion. It's still getting started, which is why it could be attractive for investors. Revenue increased 24% year over year in the 2025 first quarter to $519 million, and gross margin remained at 88%. It reported positive net income in the first quarter in 2024 and 2025, but it has yet to report an annual net profit. New stocks are generally risky, but it looks like Chime has a strong and innovative business model as well as the loyalty of its members. Three years from now, the company is likely to be a lot larger, with more customers and products. Taking that 24% figure as a potential compound annual growth rate during the next three years, it would have about $3.2 billion in revenue, or close to double today's figure. It could be profitable, and if it is, the market might give it a higher valuation, increasing the chance of significant stock gains. Should you buy stock in Chime Financial right now? Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chime Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Where Will Chime Be in 3 Years? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Why Nano Nuclear Energy Stock Crashed Today
Key Points Nano Nuclear filed SEC forms regarding a cash raise of up to $620 million. The company will immediately begin to try selling $400 million worth of new stock. Nano Nuclear is burning cash, but $400 million in new money could keep it solvent for years. 10 stocks we like better than Nano Nuclear Energy › Shares of Nano Nuclear Energy (NASDAQ: NNE), one of a handful of start-up companies aiming to commercialize small modular nuclear reactors, announced late Friday it intends to raise up to $620 million to further its nuclear endeavors. As of 11:11 a.m. ET, investors have sold off the stock by 8%. What is Nano Nuclear up to? Nano Nuclear says the $620 million will take the form of common and preferred stock issuances, purchase contracts, warrants, subscription rights, depositary shares, debt securities, and/or units. The cash may be raised "from time to time in one or more offerings." But most of the cash may be raised pretty quickly, through a $400 million at-the-market stock selling program managed by three investment banks, that will see Nano Nuclear create and sell shares at whatever price it can get. Is Nano Nuclear stock a buy? Nano Nuclear stock tumbled on the news. It cost a bit under $42 per share last week -- implying $400 million could be raised pretty easily by selling fewer than 10 million new shares. With 41.5 million shares outstanding at last report, that would probably grow the share count to about 51 million, and dilute existing shareholders by about 23%. Now that the stock price is falling, Nano might have to sell 1 million more shares to get its full $400 million -- and the stock dilution amount could rise to 25%. It would be hard to call that good news. But it's not necessarily bad news for investors, either. Nano Nuclear's only burning about $16 million a year right now. At that rate, $400 million in new cash could fund this company's research and development (R&D) work for a couple of decades. Net-net, I'd call this a positive for a very speculative stock. Should you invest $1,000 in Nano Nuclear Energy right now? Before you buy stock in Nano Nuclear Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nano Nuclear Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Nano Nuclear Energy Stock Crashed Today was originally published by The Motley Fool Sign in to access your portfolio
Bloomberg
17-07-2025
- Business
- Bloomberg
China Probes $100 Underwriting Fee Amid Xi Price War Clampdown
China is investigating some of the nation's top investment banks over bond underwriting fees that hit below $100, as regulators expanded a crackdown on a long-standing price war amid broader efforts by President Xi Jinping to curb cutthroat competition. The National Association of Financial Market Institutional Investors last week launched a probe into the six underwriters of a 35 billion yuan ($4.9 billion) debt sale by China Guangfa Bank Co. after their fee bids 'drew public attention.'
Bloomberg
16-07-2025
- Business
- Bloomberg
London's Push to Ease Share-Sale Rules Poses Conundrum for Banks
London is cutting red tape to make it easier for companies to tap equity markets, but investment banks say the new rules could create more uncertainty in the near term. The UK's Financial Conduct Authority this week finalized plans that will require listed companies to produce a prospectus only if they are raising 75% or more of existing share capital, up from 20%. London-listed companies have raised nearly $3 billion so far this year via capital increases.
Yahoo
16-07-2025
- Business
- Yahoo
Jim Cramer Says Goldman Sachs 'Will Have Terrific Numbers and Even Better' Story
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the stocks that Jim Cramer shared insights on. Cramer mentioned that he likes the stock, and the Charitable Trust owns it, as he commented: 'Wednesday, we hear from the two big investment banks… Goldman Sachs and Morgan Stanley. I think both will have terrific numbers and even better stories now that the mergers and acquisition business has exploded in the IPO markets, warm, bordering on hot. What a change from even two months ago. And these two companies are going to reap outsized benefits. You know, I like them both. My Charitable Trust owns Goldman Sachs, my alma mater, from the 80s.' A close-up of a financial advisor giving advice to a customer, demonstrating the importance of consumer and wealth management. Goldman Sachs (NYSE:GS) provides financial advisory, investment management, lending, trading, and banking services across asset classes. The company also offers credit cards, transaction banking, and wealth planning for corporate and individual clients. On July 2, Cramer discussed the stock in detail, as he said: 'Goldman Sachs, which we own for the Charitable Trust… let's just say it's had a smaller dividend payout than its peers for a long time, but also just announced a major 33% dividend boost. Now, even after that, the stock only yields 2.23%, but that is no longer chintzy… Goldman trades at 2.22 times book value… Goldman Sachs, JPMorgan, and Morgan Stanley have the most valuable franchises… Morgan Stanley and Goldman are two tremendous investment banks… While we acknowledge the potential of GS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
